July 22 (Bloomberg) -- Texas Instruments Inc., the biggest
maker of analog semiconductors, forecast third-quarter profit
that may top analysts’ estimates on demand for chips used in
industrial machinery, cars and mobile-phone systems.

Net income will be 66 cents to 76 cents a share on sales of
$3.31 billion to $3.59 billion, the Dallas-based company said in
a statement yesterday. That compares with average analysts’
estimates for earnings of 68 cents on revenue of $3.43 billion.

Texas Instruments, with one of the broadest product lines
in the semiconductor industry, benefits when demand rises for
equipment ranging from space hardware to home appliances. Also
fueling growth is an increase in orders from companies that make
base stations for wireless networks, helping push sales up 8
percent in the second quarter, Chief Financial Officer Kevin
March said.

“We had been seeing automotive and industrial being very
strong, but what entered the fray this quarter was
communications infrastructure being very strong,” March said in
a phone interview. “The underlying economy is doing OK. It’s
not doing great, but it’s not doing terrible either.”

Second-quarter net income rose 3.5 percent to $683 million,
or 62 cents a share, from $660 million, or 58 cents, a year
earlier, the company said. Revenue climbed to $3.29 billion.
Analysts had estimated earnings of 59 cents on sales of $3.27
billion.

Texas Instruments shares were little changed in extended
trading following the report. The stock had gained 0.7 percent
to $49.17 at yesterday’s close in New York, and has climbed 32
percent in the past year.

Economic Recovery

“The company’s benefiting from a macroeconomic recovery,”
said Bill Kreher, an analyst at Edward Jones & Co. who has a
hold rating on the stock. “It looks like the Street was hoping
for maybe a little bit more in terms of outlook.”

Chief Executive Officer Rich Templeton is seeking to
restore sales growth after three consecutive annual declines, a
result of the company’s exit from the market for digital-modem
chips for mobile phones.

Texas Instruments is trying to expand its share of the
analog-semiconductor market, which was 15 percent in 2013,
according to researcher IHS Technology. Its nearest rival is
Qualcomm Inc., which had an 8.4 percent share. Analog chips
convert physical data like sound, touch, pressure and
temperature into digital signals for devices including mobile
phones, cars and factory machinery.